MINUTES OE EVIDENCE ON PETITION OE JOHN MARTIN.

lI.—No. 6

5

Clayton.

Martin.

32. I was advised that it was not my duty at once to demand the payment of the £1,000 from Mr. Mr. Martin, on the failure of the contract. 28th September, 1871. Mr. .Tolm Martin, Petitioner, examined. 33. The Chairman.'] I am a merchant trading in Wellington. I agreed to become a surety for Mr. Mr. Ben Smith when he sent in the original tender for building Government House. This tender formed tho basis of an agreement between Mr. Smith and the Colonial Architect. Certain additions to and deductions from the original tender were made, resulting in a net sum of £10,583, but I was not made acquainted with the particulars. 34. I became one of the sureties under the new arrangement. 35. After carrying on the work for some time, Mr. Smith became bankrupt; Mr. Clayton then sent for me, and said, " .Smith's broke, now what is to be done?" I said perhaps it would be better for me to pay the £1,000, and have no more to do with it. Mr. Clayton said, "No. If you'll give me a cheque for £100 to pay the wages of men now owing, it will be all right." I then gave him the cheque ; at the same time he said, "You do not require Ben Smith, I will look after it." I took no more notice. I imported the necessary materials, and paid wages. I have receipts to show for everything I have done. I understood clearly that I should not lose a shilling. 36. I considered that I was finishing the building in preference to losing tho £1,000 as a surety. 37. I considered Smith was no longer contractor. 38. Smith was there all the time. I gave him a few pounds for his family. He was there looking after the men employed. 39. I cannot say in whose name the " progress payments " were made out. 40. I drew and gave a receipt for the money from the Treasury after Smith's bankruptcy. 41. The last £2,000 was received in my own and Smith's name. The Attorney-General said it would be as well to have Mr. Smith's name added to the receipt. 42. It was before his bankruptcy that I received authority from Smith to draw money on account of the contract. 43. It was because I had advanced Smith money to carry out his contract that I received from him authority to draw. 44. I considered I had no personal responsibility in the matter of carrying on the works after the failure of Smith. 45. The cheque which I gave the Architect for £100, is the only documentary evidence I can produce in support of my view of the position I considered I was in after the bankruptcy of Smith. 46. I have no witnesses to bring in support of my statements. 47. Mr. Peacock.] I was induced by Mr. Clayton's representations to become security under the agreement. The Colonial Architect knew perfectly well that Smith had no money. 48. Mr. Clayton represented to me, after Smith's insolvency, that the price was sufficient to leave a margin of profit. 49. I should have paid the £1,000 immediately, if this representation had not been made, instead of carrying on the work. 50. I don't know what the Attorney-General meant when, on the last payment of £2,000 being made, he said that it would be as well to have the signature of Smith to the receipt as well as my own. 51. After I had commenced to carry on the work, I soon found that the amount of the contract was wholly inadequate to finish the work ; but it was impossible for me to throw it up, as there were several orders for large amounts given in all parts of the Colony, for materials to carry on the work. 52. Mr. Bri/ce.] I would have been entitled to any profit which might have been made on the contract after the bankruptcy of Smith. 53. Mr. Clayton told me that I should make money out of the contract, instead of losing any. 54. It did not occur to me that there could be any mistake made by Mr. Clayton in the matter. 1 relied on Mr. Clayton's knowledge of the subject. 55. Mr. Creighton.] I have made a large loss, amounting to somewhere about £7,000. I attribute this loss to the statements made by the Colonial Architect. 56. Mr. Shepherd.] I was to receive 5 per cent, from Smith on the contract of £10,583 for building the Government House, in the event of it turning out a profitable work. 57. Mr. Smith led me to believe that there would be a profit on the contract. 58. At the time of Smith's failure there was nothing to make me believe that the contract would not turn out a profitable one; I still thought it would pay. 59. I did not think anything of the 5 per cent.; I was trying to save the £1,000 bond, which I should have paid had it not been for the representations of the Colonial Architect. 60. I received the money through an order given by Smith in my favour. 61. Had I not been responsible for £1,000, I certainly should not have carried on the works. 62. I complain of Mr. Clavton making me believe that it was a payable contract. 63. Undoubtedly it could "have been carried on more favourably by a builder than by myself. Smith always looked after the works. 64. When Smith failed, I had no longer faith in him. I then went to Mr. Clayton to get his opinion. Mr. Clayton told me that I should not lose a penny. 65. The Government did not enter into a fresh contract with me. They did not release Smith. 66. Mr. Clayton used to send me letters. I think he also sent them to Smith. 67. Mr. McG-illivra;/.'] I have nothing to produce in proof of the assent of the Government to my undertaking the completion of the works. 68. I did not understand that the Colonial Architect had power to treat with me for the purpose of completing the works. 2